Future Value Annuities (Grade 12 NSC Matric Mathematics): Flashcards

Equal payments at regular intervals for specific period

Regular deposits earning compound interest for future use

Regular payments to repay loan/bond with compound interest

Missing a payment for a particular month

Early deposits earn more interest (compound longer)

$F = x\frac{(1 + i)^n - 1}{i}$

$x = F \times \frac{i}{(1 + i)^n - 1}$

Future value (total amount accumulated)

Fund to save for replacing equipment/assets that depreciate

Divide annual rate by 12, multiply years by 12